CoreWeave vs. Nebius: Which GPU Cloud Leader Will Dominate the AI Infrastructure Race?

Julian WestWednesday, May 28, 2025 11:23 am ET
6min read

The AI revolution is no longer a distant promise—it's here, and the race to dominate the GPU cloud infrastructure market is intensifying.

CoreWeave
(CRWV) and Nebius (NBIS) stand at the forefront of this transformation, each vying to become the go-to provider for enterprises and innovators demanding scalable, high-performance computing. But as the market matures, financial sustainability and customer diversification will separate the winners from the also-rans. Let's dissect the data to uncover which stock deserves your investment now.

The Financial Sustainability Faceoff

First, let's compare the financial fortitude of these two giants.


CoreWeave's revenue surged 420% to $981.6M, dwarfing Nebius's 385% growth to $55.3M. While both are growing exponentially, CoreWeave's scale is undeniable. Its $25.9B revenue backlog—including $14.7B in confirmed contracts and partnerships with OpenAI and IBM—acts as a financial moat, ensuring predictable future earnings.

Nebius, however, faces steeper challenges. Despite its revenue jump, the company posted an Adjusted EBITDA loss of $62.6M and a net loss of $113.6M, signaling operational inefficiencies. Its cash reserves fell by 41% to $1.45B in Q1 2025, while capital expenditures soared to $544M, draining liquidity. CoreWeave's Adjusted EBITDA margin of 62% versus Nebius's negative metrics highlights a stark profitability divide.

Customer Diversification: Breadth vs. Breadth

Both companies serve diverse industries, but their approaches differ.

Nebius's Edge in Verticals:
Nebius boasts a broad customer base across 20+ industries, including:
- Healthcare: Supporting drug discovery for Genentech and AstraZeneca.
- AI Startups: Powering Higgsfield AI's video models and KissanAI's agtech solutions.
- Media & Telecom: Enabling Krisp's noise-cancellation AI and Chatfuel's chatbots.
- Robotics: Partnering with Positronic Robotics for autonomous systems.

CoreWeave's Enterprise Focus:
While less detailed in vertical specifics, CoreWeave's $11.2B OpenAI contract and IBM partnerships signal dominance in enterprise and hyperscale AI workloads. Its 420 MW of active power capacity and 1.6 GW contracted power position it as a backbone for large-scale models like OpenAI's GPT-5.

The verdict? Both are diversified, but Nebius's customer portfolio is more broadly spread, while CoreWeave's wins are deeply strategic.

Risk Factors: Debt, Cash, and the Path to Profit

CoreWeave's Debt Burden:
Total liabilities hit $18.8B, with $4.9B in non-current debt. Its operating cash flow dropped to $61.2M (vs. $2B in Q1 2024), raising red flags about liquidity management. Yet, its $2.5B in cash and its IPO-raised $1.4B provide a cushion.

Nebius's Liquidity Crisis:
With cash reserves halving to $1.45B and losses mounting, Nebius risks needing further dilutive financing. Its $181.6M in operating lease liabilities and reliance on external investors (e.g., Bezos Expeditions' Toloka stake) add uncertainty.

The Investment Call: CoreWeave for Stability, Nebius for Speculation

The AI infrastructure market is maturing, and investors must prioritize scalable profitability over raw growth.

CoreWeave (CRWV):
- Strengths: Dominant backlog, 62% EBITDA margin, enterprise partnerships.
- Risk: High debt, volatile cash flow.
- Verdict: A BUY for long-term holdings. Its financials, though imperfect, offer the best path to sustained profitability.

Nebius (NBIS):
- Strengths: Diverse customer base, NVIDIA hardware access, aggressive expansion.
- Risk: Massive losses, cash burn, unclear debt structure.
- Verdict: A HOLD or SPECULATIVE PLAY. Turnaround potential exists, but the road to profitability is rocky.

Final Analysis: Act Now—The Window for CoreWeave Is Narrowing

The writing is on the wall: CoreWeave's $25.9B backlog and enterprise focus position it as the safer bet in a consolidating market. Its margins are expanding, and its partnerships with OpenAI and IBM lock in high-margin revenue. Meanwhile, Nebius's losses and liquidity concerns demand patience.

Investors seeking steady growth should allocate to CoreWeave now—its stock could surge as it converts backlog into profits. For Nebius, wait until it stabilizes its finances and proves it can turn losses into gains.

The AI infrastructure war is here. Choose wisely.

This analysis is based on publicly available financial data as of Q1 2025. Past performance does not guarantee future results.